Alembic aims for US rebound with new launches

economictimes.indiatimes.com:

Alembic Pharmaceuticals expects the US business to bounce back as it gears up for a busy launch schedule in FY24, which includes oncology and non-oncology injectables, derma, and ophthalmic products. Many of these launches will be coming from the new facilities that cleared US Food and Drug Administration (USFDA) inspections. Alembic is also looking at possibilities of taking advantage of drug shortages in the US.

In an interview to ET, Pranav Amin, MD of Alembic Pharmaceuticals, said while the company will stay focused on the US business, it will be more cost-conscious and cherry-pick the right products. In FY24, Alembic plans to launch 20 products in the US. «We will balance ourselves out.

If we think a product is not viable and has long gestation, we'll reallocate our R&D resources. Same way if a product doesn't make sense commercially, we are okay to walk out. We're not going to sell for the sake of just selling,» Amin said.

Amin says the price erosion still persists but there are signs of moderation in the last 3-6 months. «It really depends on how robust the supply chain and quality compliance are — that's what matters in the US,» Amin added. The Vadodara-based drug maker, which has been around for over a century, is a late entrant in the US market.

It has more than made up for it. It has been investing ₹700-750 crore per annum, representing around 12% of revenue, to build a complex pipeline of products encompassing dermatology, ophthalmology, injectables, oncology injectables, and oncology oral solids. It has invested more than ₹1,800 crore to build three new USFDA-compliant facilities to manufacture these products.